Protect Funding for the Consumer Financial Protection Bureau

Deadline: Friday February 2, 2018

Dear Colleague:

The Consumer Financial Protection Bureau (CFPB), which is funded through the Federal Reserve System, must request agency funds for each quarter. You may be aware that in his most recent quarterly request, Acting Director Mick Mulvaney asked for zero
funding for the CFPB for the second quarter of 2018. In contrast, his predecessor asked for $217.1 million and and $86.6 million in the two previous fiscal quarters. Also troubling is that, in his request to the Federal Reserve, Acting Director
Mulvaney stated that he planned to spend down the agency’s emergency reserve funds before asking for additional appropriations. These actions signal his intent to defund and dismantle the Consumer Financial Protection Bureau.

I hope you will join me in urging the President to request robust funding for the CFPB in FY19. Without sufficient funding, the CFPB will not be able to fulfill its vital mission of protecting consumers from abusive or fraudulent financial practices and
holding Wall Street accountable. In just six years, the agency has been successful in returning nearly $12 billion dollars to 29 million consumers in all 50 states through its enforcement actions and its work directly benefits veterans, older Americans and
students. It is vital that we protect the only agency solely dedicated to protecting consumers when they borrow, save, and invest in our financial system.

If you have any questions about or would like to sign on to this letter, please contact Renuka Nagaraj in Congressman David Cicilline’s office (Renuka.Nagaraj@mail.house.gov; x54724).

Sincerely,

David N. Cicilline

Member of Congress

Text of Letter:

President Donald J. Trump

The White House

1600 Pennsylvania Avenue

Washington DC 20500

Dear President Trump:

As you draft your FY19 budget for government agencies and programs which are funded by Congress, we ask that you also request robust funding for the Consumer Financial Protection Bureau (CFPB). The Consumer Bureau, which is funded through the Federal Reserve
System, will not be getting any new funds in the next quarter. Without proper oversight, the Bureau could be left without sufficient funds and unable to fulfill its mission of holding Wall Street accountable.

In his quarterly request to the Federal Reserve, CFPB Acting Director Mick Mulvaney asked for no funding for the second quarter of 2018. By contrast, Mulvaney’s predecessor asked for $217.1 million and and $86.6 million in the two previous fiscal quarters.
In his request, Director Mulvaney stated that he planned to spend down the agency’s emergency reserve funds before asking for additional appropriations. In his request letter, Mulvaney also cast doubt on whether the Bureau should even be allowed to maintain
an emergency fund. We are alarmed that Mulvaney’s request seems to reveal his intention to shrink the agency and undermine its ability to carry out its functions.

The CFPB was created in response to the 2008 financial crisis to protect consumers from abusive or fraudulent practices when they borrow, save, and invest in our financial system. In just six years, the CFPB has been successful in investigating deceptive
banking practices at major financial institutions and taking action against bad actors in the student loan, credit card and payday lending industries. The Bureau has also proposed new rules to protect consumers, such as creating disclosure rules for pre-paid
credit cards, making it easier for borrowers to dispute debts and requiring lenders to determine whether people can afford to repay their loans. The Bureau’s work directly benefits veterans, low-income individuals, older adult and students. All in all, the
CFPB has returned nearly $12 billion dollars to 29 million consumers in all 50 states through its enforcement actions. Over 1.1 million consumers filed complaints with the CFBP that help the agency uncover financial fraud. There is no doubt that the CFPB
has played a critical role in leveling the playing field between everyday people and powerful financial institutions.

Defunding the Consumer Bureau means undermining the only agency solely dedicated to protecting consumers in the financial market. Therefore, we ask that you request the Federal Reserve to provide robust funding to the CFPB in the next quarter so that it
will be able to continue its critical work protecting hardworking Americans against systemic deceptive and abusive financial practices. Thank you in advance for your attention to this matter.